Advantech Reports FY2025 EPS of NT$12.25 and Announces 3-Year Special Dividend Program

Advantech (TWSE: 2395) today announced the following consolidated financial results for the fiscal year ended December 31, 2025:

• Revenues                        NT$70.882 billion, increase 19% YoY
• Gross profits                  NT$28.198 billion, increase 16% YoY
• Operating profits          NT$11.567 billion, increase 28% YoY
• Net income                    NT$10.593 billion, increase 18% YoY
  
• Earnings per share       NT$12.25
  

At today’s Board meeting, Advantech approved the earnings distribution proposal and a structural optimization of its dividend policy. The Company will raise its recurring cash payout ratio to a normalized range of 70%~80%. In addition, the Board approved a time-limited special cash dividend plan, under which an additional NT$2 per share will be distributed annually from capital surplus for three consecutive years. Based on this proposal, the Company plans to distribute a regular cash dividend of NT$9.2 per share for fiscal year 2025 (cash payout ratio of 75%), together with a special cash dividend of NT$2 per share from capital surplus. The total cash dividend will therefore amount to NT$11.2 per share, representing a total payout ratio of 91.4%. This distribution reflects the Company’s commitment to sharing operating results with shareholders. The proposal will be submitted to the Annual General Shareholders’ Meeting for final approval.

For the fourth quarter of 2025, Advantech reported consolidated revenue of NT$17.921 billion, representing a YoY increase of 10%. Gross profit for the quarter totaled NT$7.129 billion, with a gross margin of 39.8%. Consolidated net income reached NT$3.103 billion, translating into a net margin of 17.3%. Earnings per share (EPS) for the fourth quarter amounted to NT$3.58. In terms of U.S. dollar basis, Advantech’s full-year 2025 revenue reached US$2,274 million, up 22% YoY. From a regional perspective, North America, Europe, China, Taiwan, and Emerging markets each delivered double-digit YoY growth, while the North Asia market remained flat compared to the prior year. In terms of business units, all sectors achieved double-digit YoY growth, demonstrating solid overall operating momentum.

Mr. Eric Chen, CFO and President of General Management at Advantech, stated that 2025 was a pivotal year for Advantech which demonstrating strong operational resilience and marking a successful transformation. Advantech achieved record-high while firmly establishing long term growth path with “Edge Computing & AI-Powered WISE Solutions” as the company’s core strategic focus. In the meanwhile, the market demand continuously remains solid. For 4Q25, the overall Orders-to-Shipments ratio (B/B Ratio) reached 1.33, with North America, Europe, and China posting 1.28, 1.57, and 1.25, respectively. The Company maintains a positive business outlook and will continue to deepen its edge AI initiatives to ensure sustainable long-term growth momentum.

In a strategic move to optimize shareholder returns, Advantech announced a structural shift in its dividend policy. The Company will transition to a sustainable all-cash model, moving away from its periodic stock dividend practice. This optimization includes elevating the recurring cash payout ratio to a new target range of 70%~80%. Furthermore, the Company has launched a time-limited special cash dividend program. From 2026 to 2028, covering three consecutive distribution years, an additional NT$2 per share will be distributed annually from capital reserves. The total incremental distribution is expected to be NT$5.2 billion. This initiative aims to establish a transparent, stable, and predictable long-term shareholder return mechanism, thereby enhancing shareholder value.